Updates, advisories and surprises

(5:18 PM ET) SAN FRANCISCO (MarketWatch) -- Sonic Corp.
SONC, +1.72%
late Wednesday reported second-quarter net earnings of $6.22 million, or 9 cents a share, down from $12.9 million, or 14 cents a share, during the year-ago period. Earnings before special items were 16 cents a share. The Oklahoma City-based drive-in restaurant chain posted revenue of $161.5 million, up 8% from $148.9 million, last year. Analysts polled by Thomson Financial had forecast second-quarter earnings of 14 cents a share on revenue of $161 million. System-wide same-store sales rose 2% during the current quarter. Additionally, Sonic said it expects third-quarter earnings of 30 cents to 31 cents a share on revenue growth of between 10% and 12%. Analysts are currently looking for per-share earnings of 30 cents on revenue of $204 million for the quarter. Comparable-store sales are expected to increase 2% to 4%, the company said.

Switch and Data quarterly loss narrows

(4:24 PM ET) SAN FRANCISCO (MarketWatch) -- Switch and Data Facilities Co.
SDXC
late Wednesday reported a fourth-quarter net loss of $1.66 million, compared with a net loss of $3.83 million in the same period last year. Net loss attributable to common shareholders came in at $5.14 million, or 5 cents a share, compared with $24 million, or 22 cents a share, last year. Switch and Data, which provides Internet exchange and colocation services, said revenue in the three months ended Dec. 31 rose 9.5% to $29.3 million from $26.7 million. For full-year 2007, the company expects revenue of $127 million and adjusted earnings before interest, taxes, depreciation and amortization of $40 million.

RF Micro backs fourth-quarter outlook, looks ahead

(4:20 PM ET) SAN FRANCISCO (MarketWatch) -- RF Micro Devices Inc.
RFMD
after Wednesday's closing bell said it still expects its previous outlook of fourth-quarter earnings of 11 cents to 12 cents a share on revenue of $250 million to $260 million, assuming the Jazz Semiconductor transaction closes in March. The Greensboro, N.C.-based company also confirmed it still sees pro forma per-share earnings of 10 cents to 11 cents a share. Analysts polled by Thomson Financial are currently forecasting earnings of 11 cents a share on revenue of $256 million for the quarter. RF Micro, a mobile communications technology company, also said it currently sees a first-quarter slowdown in demand from a top-tier customer that will impact operating results. For the first quarter, the company said it sees a "sequential decrease" in revenue, margins and per-share earnings. Analysts are looking for per-share earnings of 11 cents on revenue of $264 million for the quarter.

Paychex quarterly profit rises 11%

(4:10 PM ET) SAN FRANCISCO (MarketWatch) -- Paychex Inc.
PAYX, -0.47%
after Wednesday's closing bell reported fiscal third-quarter net earnings of $126.6 million, or 33 cents a share, up 11% from $114.5 million, or 30 cents a share, in the year-ago period. The Rochester, N.Y.-based provider of human resource and employee benefits outsourcing services said revenue in the quarter ended Feb. 28 rose 13% to $485.3 million from $430.6 million in the comparable period last year. Analysts polled by Thomson Financial were expecting a per-share profit of 35 cents on revenue of $488 million. The company still expects fiscal 2007 net income growth of 13% to 15%, on revenue growth of 12% to 14%.

Financial stocks move deeper into red after Bernanke

(10:44 AM ET) NEW YORK (MarketWatch) -- Financial stocks moved a bit deeper into the red following comments by Fed Chairman Ben Bernanke. The Amex Securities Broker Dealer Index
$XBD
dropped 1.4%. The KBW Bank Index
$BKX
fell 1.2% and the S&P Insurance Index
IUX
fell 0.6%. Earlier, losses were all less than 1%. Citigroup fell 11 cents to $50.95 after posting gains earlier in the session on an upgrade by Bank of America.

Industrial Services of America's profit rises; shares up

(10:10 AM ET) SAN FRANCISCO (MarketWatch) -- Industrial Services of America Inc.
IDSA, -3.95%
shares leapt 38% to $8.12 in Wednesday morning trade after the Louisville, Ky.-based logistics management services company late Tuesday reported fourth-quarter net income of $729,728, or 20 cents a share, up from $415,536, or 12 cents a share, in the year-ago period. Revenue fell to $14.6 million from $19.7 million.

Retail shares slip, led by Federated Dept. Stores

(9:42 AM ET) NEW YORK (MarketWatch) - Retail shares slipped in Wednesday morning trading led by weakness in department store operators including Federated Department Stores Inc.
FD
Nordstrom Inc.
JWN, -5.28%
and Kohl's Corp.
KSS, +1.71%
Earlier on Wednesday, Federated said it's taking the ticker symbol "M" as part of its campaign to change its name to Macy's Inc. Wal-Mart Stores Inc.
WMT, -1.02%
saw its shares slump in morning trading after a report in the New York Times said the company may shelve its plans to open stores in New York City after a long battle to establish a presence in the region. Circuit City Stores Inc.
CC, +1.73%
shares jumped after the company announced further restructuring plans.

Circuit City outlines further restructuring moves

(9:22 AM ET) NEW YORK (MarketWatch) - Struggling home electronics retailer Circuit City Stores Inc.
CC, +1.73%
on Wednesday outlined additional moves for its previously-announced restructuring plan, including job cuts and store closures. The Richmond, Va.-based company said it will cut about 3,400 store associate jobs. The cuts, which are occurring today, focused on associates who the company said "were paid well above the market-based salary range for their role." New associates will be hired for these positions and compensated at the current market range for the job, the company said. The board authorized management to explore strategic alternatives for its InterTAN Inc. business, which could include the sale of the operation. The company hired Goldman Sachs as an advisor. Circuit City previously announced its intention to close about 60 international stores. So far, 55 stores were closed in February and it expects to close about 10 additional stores in the first half of fiscal 2008. For the fiscal fourth quarter, which will be reported April 4, the company said it will record pre-tax expenses of $92 million in goodwill impairment; $31 million related to store and other facility closings; and $21 million related to other restructuring activities. The company expects greater sales volatility during the first half of the year, citing the "significant nature of changes being implemented." The company has plans in place to quickly rebuild and improve its level of execution prior to the holiday selling season. Circuit City now expects fiscal 2007 consolidated net sales growth of 8%, down from 9% to 10%; domestic same-store sales growth of 6%, down from 7% to 8%.

GE, SunPower dedicate new solar plant in Portugal

(8:27 AM ET) NEW YORK (MarketWatch) -- General Electric
GE, +1.65%
and SunPower
SPWR, -3.16%
unit PowerLight on Wednesday dedicated an 11-megawatt, 150-acre solar power plant in Serpa, Portugal, one of the sunniest spots in Europe. The plant generates enough electricity for 8,000 homes. Catavento, Producao de Energia Eolica SA built the plant. GE Energy Financial Services financed and purchased the project in a $75 million transaction last year. PowerLight designed, deployed, operates and maintains the plant, made from photovoltaic modules from SunPower, Sanyo, Sharp and Suntech
STP, +0.51%

CVS/Caremark commences 150 mln share buyback

(7:23 AM ET) NEW YORK (MarketWatch) - CVS/Caremark Corp.
CVS, -0.22%
said Wednesday it commenced the tender offer to buy back up to 150 million, or about 10% of its outstanding common stock, at about $35 a share. The offer will expire at midnight on April 24, unless it is extended. The company hired Lehman Brothers and Morgan Stanley as dealer managers for the offering and Morrow & Co. as the information agent. CVS and Caremark shareholders earlier this month voted to approve a merger of the two companies.

Rex Stores fourth-quarter earnings $3.6 mln vs $6.6 mln

(7:14 AM ET) NEW YORK (MarketWatch) -- Rex Stores
RSC
Wednesday reported fourth-quarter earnings of $3.6 million, or 30 cents a share, down from a year-ago profit of $6.6 million, or 57 cents a share. On a continuing operations basis, the Dayton, Ohio-based consumer electronics retailer earned $4 million, or 34 cents a share, for the January period. Net sales and revenue totaled $104.4 million for the three-month period, down from $123.5 million a year earlier. Same-store sales slid 13.7% in the fourth quarter. Rex Stores noted it recorded $4.1 million of income in the latest quarter from synthetic fuel limited partnership investments, investment income and equity in unconsolidated affiliates. The stock closed Tuesday at $15.75, down 5.4%.

Bombardier profit climbs 30%, reaffirms guidance

(6:22 AM ET) LONDON (MarketWatch) -- Bombardier Inc.(CA:BBD.A)(CA:BBD.B), the Canadian maker of jets and trains, said its fourth-quarter net profit rose 30.2% to $112 million, or 6 cents a share, from $86 million, or 5 cents a share a year earlier. Revenue for the period rose 8.7% to $4.39 billion. Growth was driven by improved margins at its aerospace and transportation divisions as well as record orders, with the transportation unit seeing its backlog rise to $27.5 billion from $20.9 billion. Bombardier also reaffirmed its goal for a margin of 6% on its earnings before interest and tax within the next three years.

Noble International's loss narrows as sales jump

(6:16 AM ET) WASHINGTON (MarketWatch) -- Noble International Ltd.
NOBL, -0.05%
reported a fourth-quarter loss of $2.2 million, or 16 cents a share, narrower than the company's loss of $4 million, or 29 cents a share, in the final three months of 2005. The automotive-parts supplier's quarterly sales jumped to $138.2 million from the prior year's $96.4 million, in part reflecting Warren, Mich.-based Noble's acquisition of Pullman Industries Inc. The results came up short of management's expectations, reflecting short-term costs associated with Noble's growth initiatives and lower North American vehicle output. In addition, the company pegged revenue for 2007 in a range of $640 million to $650 million from current business lines, based on estimated North American light-vehicle production of 15 million units. Noble's 2006 top line amounted to $441.4 million. Shares of Noble lost 38 cents, or 2.1%, to end Tuesday's trading at $18.04.

Woolworths net profit climbs, underlying result weakens

(2:56 AM ET) LONDON (MarketWatch) -- U.K. retailer Woolworths Group(UK:WLW)said its net profit for the year ending Feb. 3 rose 33.7% to 13.5 million pounds ($26.5 million), as revenue rose 4% to 2.74 billion pounds. Excluding one-off items, the firm said pretax profit from continuing operations fell 83% to 7.3 million pounds as its retail arm faced increasing competition and a drop in market-share. Same-store sales in the retail arm fell 6.6% amid price deflation in the entertainment market and increased competition from supermarkets. The group's distribution arm saw sales rise 29.7% as an expanded customer base and several acquisitions more than made up for the loss of its biggest customer -- supermarket chain Tesco(UK:TSCO). Woolworths said sales for the first seven weeks of the new fiscal year are "reasonably comparable" to the prior year. The company said it expects the challenging retail environment to continue though cost controls and higher margins should drive an improved financial performance.

United Utilities sees results in line with its expectations

(2:37 AM ET) LONDON (MarketWatch) -- United Utilities(UK:UU)said Wednesday that it's on track to deliver results in line with its expectations for the year ending March 31. The group said its North West water utility division is expected to deliver strong underlying operating profit growth, mainly due to regulatory price increases. The contract solutions unit is expected to report broadly flat underlying profit amid limited new opportunities. The company also noted that restructuring charges for the year are likely to be around 15 million pounds ($29 million) and its overall tax rate will be roughly 30%, reflecting the full provision for deferred tax.

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